Debt Ratio
/ˈdɛt ˈreɪʃiˌoʊ/
Definitions
- (n.) A financial metric representing the proportion of a company's total debt to its total assets, used to assess financial leverage and risk.
The court examined the debt ratio to determine the company's solvency in the bankruptcy case.
Forms
- debt ratio
Related terms
See also
Commentary
Debt ratio is primarily a financial term but is relevant legally in contexts like bankruptcy, insolvency, and fiduciary duty evaluations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.